Bankruptcy looms for cash-starved Saab

Share

Reports from Europe say the Swedish courts might soon declare Saab bankrupt--possibly as soon as Wednesday--because the company is out of cash.

Saab recently won court protection from its creditors while it waited for funds. It has been expecting a loan of $95.7 million from Chinese car company Youngman and $239 million from Chinese company Pangda. The money would let Saab pay salaries and restart its production line in Sweden, which has been idle since June. To stay afloat, Saab has been selling its other assets.

But news reports in Europe say the Chinese government might not OK the deals. One sticking point is that Saab is not being required to give up any new rights to intellectual property as a condition of the payouts.